HK April 2016 fair raw skins and hides market report
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HONG KONG SPRING 2016 FAIR - RAW SKINS AND HIDE MARKET TRENDS
APRIL 11, 2016
With the Hong Kong fair over, not much seems to have changed with the hide market as we await the post-fair follow up.
The steer market remained relatively steady on low volume with a stalemate of low bids―and sellers not willing to take less money. A number of suppliers said there was a lot of resistance to price and buyers were willing to wait, hoping prices will come off in the next week or so. The cow market pressure continued to build with a global surplus of hides, wet blue and crust that make light weight (1.4mm) leathers. Give or take a dollar, big packer HTS traded between $65 to $67, BBS at $72 and HNS at $74.
Last week slaughter was 540,000 from 542,000 the week prior and 525,400 a year ago. Year-to-date kill is tracking like last year, but is expected to increase this summer with cattle supplies growing and beef forecasted to be featured by restaurants and retailers. The export sales for week ending March 24 was down at 378,800 from 658,700 the week prior and if the feedback from the fair is correct, it should be below average again in this week’s report. Packer margins for the week were negative by $29.96 per head, compared to a negative $27.80 the week before.
It’s a guess to predict prices in the hide market, but this week a number of people are thinking prices will roll back although not significantly. Up until now, producers have been able to hold prices for the more popular selections and this week no doubt will continue to put on a good face. If buyers follow through similar to last week with low bids, it could be another slow week…time will tell.